Environmental, social and governance – ESG – is a term that sums up real-world issues that interact with investment decisions and performance. As such, ESG considerations are an important element of our investment approach.

Here, we focus on environmental issues. The UKRF believe there is compelling evidence that sustainable business practices lead to better risk-adjusted returns and outcomes in the long-term. We see environmental issues, such as climate change, as a key financial risk affecting our investment asset portfolio. In the interest of members and aligned with the goals of the Paris Agreement, across the investment portfolio we aim to halve greenhouse gas emissions by 2030 and to be net zero carbon by 2050 or sooner.

Get an at-a-glance flavour of this topic with the snapshot, then read further from our range of articles and case studies below.

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Some of the main issues affecting the natural world…

Climate change

climate change

Use of water and energy


Waste and pollution




Stranded assets

oil platform



Three key climate change risks the UKRF must manage:

transition risk

Transition risk: The possibility of short-term losses on investments as businesses and industries adapt to lower carbon emissions.

physical risk

Physical risk: The potential damage to land, buildings or systems from extreme climate events.

policy risk

Policy risk: The effects of an uncertain economy worldwide while it is not clear which countries and governments will aim for lower carbon emissions.

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Explore more on this topic using the resources below:


Carbon emissions: a closer look

In earlier Newsroom articles, we’ve introduced the UKRF’s ambition to reach net zero carbon emissions. You can learn more about how emissions are tracked and defined here

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Net Zero: our ambition

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How we'll reach our ambition to reach 'Net Zero' carbon emissions

Watch here

Case Study

Octopus Energy Generation

octopus renewables

Octopus manages a group of solar energy sites on the UKRF’s behalf.

By bringing together asset managers, ecologists, landowners and local councils, Octopus has guided the creation of new land management programmes on 11 of these sites.

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Find our full set of documents about responsible investment on one page, including our Statement of Investment Principles and our Responsible Investment Statement.

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